Auditing and EthicsMCQQuestion 6239 of 213
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10. Financial events or conditions that may cast significant doubt on the entity's ability to continue as a going concern does not include

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option A — Inability to comply with the terms of loan agreements.

All Options:

  • AInability to comply with the terms of loan agreements. ✓
  • BInability to pay creditors on due dates.
  • CShortage of important supplies.
  • DSubstantial operating losses.

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: As per the official suggested answer, option **A** is correct. Hence, **Option A** is the correct answer.

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